{"id":46268,"date":"2015-04-08T11:10:00","date_gmt":"2015-04-08T10:10:00","guid":{"rendered":"http:\/\/www.smartinsights.com\/?p=46268"},"modified":"2015-04-08T11:12:05","modified_gmt":"2015-04-08T10:12:05","slug":"confirmation-bias-customer-loyalty","status":"publish","type":"post","link":"https:\/\/www.smartinsights.com\/persuasion-marketing\/persuasion-marketing-principles\/confirmation-bias-customer-loyalty\/","title":{"rendered":"Using confirmation bias to increase conversion"},"content":{"rendered":"<h2>Examples showing why customer loyalty may be a self-fulfilling prophecy<\/h2>\n<p>We\u2019re funny creatures, us apes. Take decision-making, for instance. Before we make a decision, such as buying an expensive item, we\u2019re often beset by doubt and uncertainty. We might check out price comparison websites, ask friends and family for advice, or explore numerous models and variations of a product, all before committing to the purchase.<\/p>\n<div>\n<p>But once we have committed\u2026 once we have handed over our credit card details and gone through with the transaction\u2026 suddenly all that uncertainty drops away like water off a duck\u2019s back. You can almost feel the relief as you wallow in the glow of your choice\u2019s superiority, even though, in reality, the products that you left sitting on the shelf were probably just as capable as the item you selected.<\/p>\n<p>It\u2019s not just buying decisions that are affected in this way. <a title=\"post purchase rationalisation \" href=\"http:\/\/en.wikipedia.org\/wiki\/Post-purchase_rationalization\" target=\"_blank\">Post purchase rationalisation<\/a>, as it\u2019s called, affects us all. <a title=\"cognitive buying\" href=\"http:\/\/www.holah.co.uk\/files\/griffiths1994.pdf\" target=\"_blank\">Gamblers are surer of their choices directly after placing their bets than shortly before<\/a> (though not, presumably, after their horse comes in last), and even relationships are affected by the phenomenon, with partners proving more accepting of their spouses foibles after they get married, than before.<\/p>\n<p><strong>So, what\u2019s going on?<\/strong><\/p>\n<p>Post purchase rationalisation, also known as buyer\u2019s Stockholm syndrome, is our brain\u2019s mechanism for reducing cognitive dissonance. Cognitive dissonance (or hypocrisy headache, as I like to call it) is the state of discomfort we experience when holding two or more contrasting beliefs at any one time. The state, first identified by eminent American psychologist Leon Festinger in 1957, leads us to embark on dissonance mitigating behaviour.<\/p>\n<p>This behaviour takes the form of retro-fitting justifications to our actions - even when these actions may have been taken glibly and without any real consideration. \u201cDo I take the red pill, or the blue pill?\u201d you might ask yourself, before swallowing down the blue one and only later convincing yourself that you made up your mind based on a rational analysis of your situation.<\/p>\n<p>As if our own internal justifications weren\u2019t enough of a concern, we also seek out complimentary evidence to back up our decisions, whilst ignoring facts that conflict with them, in a process known as confirmation bias. An example of this might result in the unconscious avoidance of five-star Mercedes-Benz reviews by customers who have recently splashed out on a new BMW, or a person\u2019s refusal to read a newspaper whose ideology jars with their own.<\/p>\n<p>This behaviour makes perfect sense \u2013 life is stressful enough without being constantly reminded that we\u2019ve made bad decisions. The brain therefore acts as a filter; seeking out evidence and opinions that support our decisions, whilst forgetting or obscuring those that portray our decisions in a poor light.<\/p>\n<p><strong>So, how can digital marketers use this phenomenon to our advantage?<\/strong><\/p>\n<blockquote><p><em>Confirmation bias can be used to generate both increased customer conversion, and also customer retention.<\/em><\/p><\/blockquote>\n<h3>Using confirmation bias to generate increased conversion<\/h3>\n<p>Your customers are constantly making decisions when on your site, whether it be the choice to visit in the first place, to view a particular product, or to add items to their baskets. The problem is that these steps in the customer\u2019s journey are rarely framed as choices, and therefore opportunities to cement confirmation bias slip past.<\/p>\n<p>Not always though.<\/p>\n<h4>Freelancer.com<\/h4>\n<p>Check out Freelancer.com, who use an always present experience bar to remind their customers of just how much effort they\u2019ve already put into the service. 'Wow \u2013 I really have spent a lot of time on Freelancer.com' the customer is nudged into thinking. 'I wouldn\u2019t waste my time on a poor service, ergo, Freelancer.com must be a really useful service'. Self-rationalisation wins the day.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" alignnone\" src=\"http:\/\/www.the-guku.co.uk\/wp-content\/uploads\/2015\/03\/Experience-points.png\" alt=\"Freelancer.com\" width=\"1328\" height=\"257\" longdesc=\"http:\/\/www.the-guku.co.uk\/wp-content\/uploads\/2015\/03\/Experience-points.png\" \/><\/p>\n<blockquote><p><em>Use of affirmation messages within the customer journey can also play a big part in engendering confirmation bias. By actively highlighting when a choice has been made, the customer becomes much more aware of their own decisions, and becomes more loyal to your brand as a result.<\/em><\/p><\/blockquote>\n<h4>Mailchimp.com<\/h4>\n<p>Take Mailchimp.com as an example. <strong>Who could forget their first monkey high-five upon sending an email campaign?<\/strong> This positive affirmation reminds the customer that they have completed a significant milestone, and rewards them for doing so. Subtle \u201cwell done\u201d and 'Good choice' messages have the same effect within a customer\u2019s check out process, and will ultimately encourage conversion.<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" class=\" aligncenter\" src=\"http:\/\/www.the-guku.co.uk\/wp-content\/uploads\/2015\/03\/mailchimp-high5.gif\" alt=\"\" width=\"400\" height=\"300\" longdesc=\"http:\/\/www.the-guku.co.uk\/wp-content\/uploads\/2015\/03\/mailchimp-high5.gif\" \/><\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.the-guku.co.uk\/wp-content\/uploads\/2015\/03\/High-fives.png\" alt=\"\" width=\"473\" height=\"110\" longdesc=\"http:\/\/www.the-guku.co.uk\/wp-content\/uploads\/2015\/03\/High-fives.png\" \/><\/p>\n<h3 style=\"text-align: left;\" align=\"center\">Using confirmation bias to generate increased retention and spend<\/h3>\n<p>Of course, we don\u2019t want to simply sell to our customers as a once off, we want to actively encourage them to return time and time again. This is where encouraging customer testimonials and social shares becomes incredibly important.<\/p>\n<blockquote><p><em>A customer is never more loyal than the moment directly after they\u2019ve purchased your product and this means it\u2019s the perfect opportunity to request either a written testimonial or a social endorsement for your product or service. But can these customer endorsements be more than just an acquisition tool?<\/em><\/p><\/blockquote>\n<p><a title=\"the-guku\" href=\"https:\/\/econsultancy.com\/blog\/65125-time-travel-flapjacks-smoking-a-psychological-take-on-social-media-part-one\" target=\"_blank\">Research carried out by The Guku<\/a> demonstrates that the act of writing and sharing a positive product review can lead to an increase in the customer\u2019s perception of your product\u2019s value by up to 37%.<\/p>\n<p>That means that the act of writing and then sharing a review can actually change your customer\u2019s recollection of your product (in our research, we used flapjacks, but the approach is applicable to all products and services). Writing about and socially sharing a positive experience amplifies confirmation bias, to the point where your customers become more likely to make repeat purchases, and will spend more when doing so.<\/p>\n<p>So, in summary:<\/p>\n<ol>\n<li><strong>Create a virtuous circle of customer loyalty<\/strong> - by demonstrating evidence of your customer\u2019s commitment to your product\/service<\/li>\n<li><strong>Be generous in your praise of the customer<\/strong> \u2013 recognise and reward every decision they make, no matter how small, as they progress towards your checkout<\/li>\n<li><strong>Encourage review writing and sharing, post sale<\/strong> \u2013 not only will it help you acquire new customers, but it\u2019ll make the ones you already have more loyal.<\/li>\n<\/ol>\n<p>This is the second article in our series by Andrew on applying\u00a0psychology to improve digital experiences and campaigns. See Andrew's\u00a0first post on\u00a0<a title=\"digital psychology using reciprocity to trigger customer loyalty\" href=\"http:\/\/www.smartinsights.com\/content-management\/content-marketing-creative-and-formats\/digital-psychology-can-increase-marketing\/\" target=\"_blank\">digital psychology -\u00a0using reciprocity to trigger customer loyalty.<\/a>\u00a0\u00a0If you would like to find out more on the subject, feel free to drop Andrew and team a line, or\u00a0<a title=\"video the-guku digital psychology\" href=\"https:\/\/www.youtube.com\/watch?v=M-mr1xTkyng\" target=\"_blank\">watch their video on digital psychology.<\/a><\/p>\n<\/div>\n<div class=\"postauthor\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" style=\"border: 2px solid #808080; margin: 5px 10px 5px 6px;\" src=\"https:\/\/media.licdn.com\/mpr\/mpr\/shrink_80_80\/p\/1\/005\/085\/174\/0a5013b.jpg\" alt=\"\" width=\"80\" height=\"80\" \/> Thanks to <a title=\"Linkedin Andrew Nicholson\" href=\"http:\/\/uk.linkedin.com\/in\/andrewnicholson1\/en\" target=\"_blank\">Andrew Nicholson<\/a> for sharing his advice and opinions in this post. Andrew is the founder of digital psychology and marketing consultancy, <a title=\"the-guku\" href=\"http:\/\/www.the-guku.co.uk\/\" target=\"_blank\">The Guku.<\/a> You can follow him on <a title=\"twitter the-guku\" href=\"http:\/\/www.twitter.com\/the_guku\" target=\"_blank\">Twitter<\/a> or connect on <a title=\"linkedin the-guku andrew nicholson\" href=\"http:\/\/uk.linkedin.com\/in\/andrewnicholson1\/en\" target=\"_blank\">LinkedIn<\/a>.<\/div>\n<div><\/div>\n<div><\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Examples showing why customer loyalty may be a self-fulfilling prophecy We\u2019re funny creatures, us apes. Take decision-making, for instance. Before we make a decision, such as buying an expensive item, we\u2019re often beset by doubt and uncertainty. We might check &hellip;..<\/p>\n","protected":false},"author":96,"featured_media":46269,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_glsr_average":0,"_glsr_ranking":0,"_glsr_reviews":0,"footnotes":""},"categories":[385],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Using confirmation bias to increase conversion | Smart Insights<\/title>\n<meta name=\"description\" content=\"Using confirmation bias to increase conversion Examples showing why customer loyalty may be a self-fulfilling prophecy We\u2019re funny creatures, us apes. Take decision-making, for instance. 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